Liquidate liquidating liquidation

Posted by / 22-Sep-2016 08:39

Liquidate liquidating liquidation

Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation.The process of liquidation also arises when customs, an authority or agency in a country responsible for collecting and safeguarding customs duties, determines the final computation or ascertainment of the duties or drawback accruing on an entry.The debts still exist in theory, at least until the statute of limitations has expired, but there is no debtor to pay them, so they must be written off in practice.Assets are distributed based on the priority of various parties’ claims, with a trustee appointed by the Department of Justice overseeing the process.The most senior claims belong to secured creditors, who have collateral on loans to the business.These lenders will seize the collateral and sell it—often at a significant discount, due to the short time frames involved.

A fine line exists between definitions of a corporate liquidation and dissolution.The company’s operations are brought to an end, and its assets are divvied up among creditors and shareholders, according to the priority of their claims. Not all bankruptcies involve liquidation; Chapter 11, for example, involves rehabilitating the bankrupt entity and restructuring its debts.Liquidation is the process of bringing a business to an end and distributing its assets to claimants.This is used, for instance, when a retail establishment wants to close stores.They will sell to a company that specializes in store liquidation instead of attempting to run a store closure sale themselves.

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